Existing home sales up in May

WilliamL. Watts

WASHINGTON (CBS.MW) -- Sales of existing single-family homes rose a stronger-than-expected 4.3 percent in May to a seasonally adjusted 5.09 million units, the National Association of Realtors reported Monday.

According to a survey of economists by CBS.MarketWatch.com, the consensus forecast had been for home sales to hold steady at around 4.87 million units.

The NAR said the May jump reflected pent-up demand.

“After setting a record low in January for the number of homes available for sale, many buyers were frustrated in early spring because there simply weren’t enough homes on the market,” said NAR President Dennis R. Cronk.

As a result, many homes listed in March and April received quick offers, resulting in a rise in the number of transactions closed last month, he said.

Tight supply reflected in inventory

The rise outpaced the 5.04 million-unit rate seen in May 1999 by 1 percent.

Meanwhile, the inventory level of existing homes available for sale slipped 1.3 percent at the end of the month to 1.52 million, which translates into a supply of 3.6 months at the current sales pace.

The inventory level stood 31.5 percent below the 2.22 million homes on the market in May 1999, the NAR said.

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